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If UA enters a forward euro contract today, the guaranteed d…

If UA enters a forward euro contract today, the guaranteed dollar cost for this euro obligation in one year should be $ [l1] million (Please write your number in million dollars and leave 3 decimal points if it is not a whole number. For example, if your answer is $500,000, write your answer as $”0.500″ million (write 0.5 in answer blank). If your answer is $50,300,000, please write your answer as $”50.300″ million.)

If Boeing uses MMH, the guaranteed dollar proceeds in one ye…

If Boeing uses MMH, the guaranteed dollar proceeds in one year should be $ [l1] million (Please write your number in million dollars and leave 3 decimal points if it is not a whole number. For example, if your answer is $500,000, write your answer as $”0.500″ million (write 0.5 in answer blank). If your answer is $50,300,000, please write your answer as $”50.300″ million.)

If Boeing hedges the exposure using an option hedge, total o…

If Boeing hedges the exposure using an option hedge, total option premium: $ [l1] million will be paid today. The option premium will grow to $ [l2] million in one year at the US interest rate. In one year, if the spot price is $1.1 per euro, the option is [l3] (in/out) of the money. So, Boeing will sell 30 million euro at the price of $ [l4] per euro, which equals to a total proceeds of $ [l5] million. After the option premium, the total (net) dollar proceeds in one year is $ [l6] million. Note: Please write your number in million dollars and leave 3 decimal points if it is not a whole number. For example, if your answer is $500,000, write your answer as $”0.500″ million (write 0.500 in answer blank). If your answer is $50,300,000, please write your answer as $”50.300″ million.